The government has begun distributing $ 600 stimulus checks to millions of Americans. But getting access to that money can be another story.
Even with a record number of Americans spending months unemployed amid the coronavirus pandemic, it took months for Congress to agree to send another round of stimulus checks and increase unemployment benefits after the last aid package expired. Millions of Americans suffered during that time, and, as The New York Times reports, often had to withdraw from their bank accounts to pay for groceries and other essentials. In return, banks charge these people overdraft fees and often block people’s accounts until those fees are paid.
This means that the $ 600 stimulus checks, which the government often deposits directly into bank accounts, may be out of reach for the people who need them most. This includes Morgan Banke, who told the Times she was only able to pay her rent or car insurance every month and made an overdraft from her Iowa credit union to cover the rest. She asked the credit union for a temporary exemption from her fees so she could use the stimulus money, but since she had done this three times in the past, she declined.
Many large banks – Bank of America, Citigroup, JPMorgan Chase and Wells Fargo among them – have said they will give up overdraft status when the checks arrive. But many regional banks and credit unions have not made the same promises, and have even closed accounts with overdrafts, leaving Americans to receive their checks in another, slower way. Read more at The New York Times.
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